Coinbase crashes after Bitcoin pump, CEO cites ‘big traffic surge’"

Coinbase, one of the leading Bitcoin and cryptocurrency exchanges, suffered a severe outage today, causing many user accounts to malfunction as Bitcoin prices surged. The disruption comes amid a sharp increase in trading activity after the price of Bitcoin briefly topped $64,000.

JUST IN: Coinbase reportedly crashed.

— Bitcoin Magazine (@BitcoinMagazine) February 28, 2024

Coinbase CEO Brian Armstrong said the outage was caused by a “massive traffic surge” that overwhelmed the exchange’s infrastructure. The sudden influx of users looking to buy, sell or trade Bitcoin overwhelmed Coinbase’s servers, causing connectivity issues for many customers.

“We are aware that some users may see zero balances across their Coinbase accounts and may encounter errors when making purchases or sales,” Coinbase said. “Our team is investigating this issue and will provide an update soon. Your assets are safe.”

We are dealing with huge traffic surges. We apologize for any issues that may have occurred. The team is working to resolve the issue.

— Brian Armstrong 🛡️ (@brian_armstrong) February 28, 2024

Following the outage, Bitcoin’s price fell sharply from ~$64,000 to ~$59,500, wiping out most of the gains Bitcoin had made today. Coinbase has experienced similar outages during periods of extreme market volatility in the past, drawing criticism from users and industry observers.

Despite the temporary disruption, the price of Bitcoin appears to have remained resilient, with the price again surpassing $60,700 at the time of this writing and continuing its upward trend amid growing institutional adoption and investor interest.

As Coinbase works to restore normal operations, the incident serves as a reminder of the challenges associated with managing a large-scale Bitcoin exchange and the importance of a robust infrastructure to ensure uninterrupted service to users.